The USD/JPY pair dropped to a daily low of 107.82 during the European trading hours but managed to erase its losses in the second half of the day. As of writing, the pair was unchanged on the day at 108.05. Despite the latest fluctuations, USD/JPY struggles to make a decisive move in either direction and remains on track to close the third straight trading day virtually flat around 108.00.
Earlier in the day, the greenback faced modest bearish pressure as rising European equity indexes didn't allow safe-haven assets to find demand. Nevertheless, with Wall Street's main indexes opening in the negative territory, the US Dollar Index (DXY) turned north and helped USD/JPY rebound. In the meantime, the benchmark 10-year US Treasury bond yield is posting small gains at 1.561%, providing additional support to the USD. On Friday, the National Consumer Price Index (CPI) data from Japan will be looked upon for fresh impetus. New Home Sales and Markit Manufacturing PMI will be featured in the US economic docket.